Why is Iso 14001 Relevant to a Sustainable Initiative?

No one can be quite certain about the date of the “sustainable” revolution but it can be argued that the turning point came after Al Gore won the Nobel Peace Prize for 2007 for his work on Climate Change. Of course I am referring to the documentary film (docufilm): “An Inconvenient Truth”.

These days it is almost uncharacteristic of any company – big or small – not to have a program that addresses (or claims to) the issue of sustainable best practices or environmental friendly processes.

Within the IT community, I’ve seen my fair share of announcements among IT vendors of their “green” plans. I’ve spoken to a few senior executives who are more than happy to share their view as to what their companies are doing in terms of green. And you know what? I am still a skeptic because I’ve seen enough vaporware-type initiatives that get announced with a lot of publicity but no substance to back it up.

So it’s refreshing to know that there are a few companies that have embodied a green initiative quietly, internally, long before the Al Gore docufilm.

The Fujitsu-Way

Take the case of Fujitsu, a Japanese company specializing in semiconductors, computers, telecommunications and services. Historians claim that the company started its road to green in 1935 at the behest of its founder, Manjiro Yoshimura.

Although its green initiative wasn’t formalized until 1992, the company started deploying environmental control systems across its factories as early as 1972. (click here for a list of environmental activities) The company’s “Green Policy 21” provided the basis for the creation of environmental management system (EMS) framework which today offers a common management structure to deal with environmental regulations.

However, “Green Policy 21” is not restricted to Fujitsu’s internal operations. It has been extended to include business partners and suppliers that form part of the company’s supply chain.

Fujitsu joins the ranks of over 130,000 companies worldwide that have achieved ISO 14001:2004 certification since the standard was first published in 1996. Fujitsu achieved worldwide ISO 14001 certification in March 2006 with an EMS framework encompassing over 126,000 employees.

ISO 14001 – the guidepost of all things green

ISO 14001 is concerned with environmental management. “This refers to what an organization does to minimize harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance,” said Alan Bryden, ISO** Secretary General.

Why ISO 14001? Apart from recognition that the company has a “green” policy, what does a company gain from being certified?

Bryden notes that there is mounting pressure worldwide from both private and public sector to show responsibility towards the environment. “An environmental system based on ISO 14001 provides a structured, systematic approach which is internationally recognized,” adds Bryden. 

ISO 14001 is a process-based, not a performance-based, standard. The focus is on establishing internal policies, procedures, objectives and targets. It is not a one-off project but one that calls for continual improvement.

According to Russell V. Thornton, manager of environmental certification for Det Norske Veritas (DNV*), ISO 14001 does not explain how to achieve goals, nor does it quantify a necessary level or type of performance improvement. Compliance with applicable laws is mandatory, but the use of the standard is voluntary. Self-declaration is an option.

Thornton says “certified companies report increased operational efficiency, marketing advantages, more organized or systematic regulatory compliance, greater regulatory flexibility, and community recognition. Certified companies have identified financial benefits, such as improved stock value, and have experienced some reduction of trade barriers”

The pressure to pursue a green initiative is not always voluntary. IT vendors are increasingly under pressure by their enterprise customers to be seen as green or faced being left out of the list of accredited suppliers.

“Within the next few years it may not be possible to conduct business in most of the world unless you can prove your ‘green’ credentials,” says Bob Hayward, Director of IT Advisory at KPMG.

Hayward notes that being green is seen as a competitive differentiator. “Many organizations are prepared to pay more for green products and services, since in the long run this will save them money,” he adds.

As an industry that has long been accustomed to hyping new capabilities, one would wonder if this ‘green’ initiative among IT vendors is nothing more than a fad.

Hayward believes that vendors like Google, HP, Dell, Microsoft and Fujitsu have embarked on major programs and investment to design, build and deliver more environmentally-friendly products. Pursuing a green initiative is neither trivial nor cheap. It’s a commitment with serious investments involved.

For example, Fujitsu invested 19.43 billion yen in FY2007 on a range of green initiatives including pollution prevention, global environmental conservation, R&D and environmental remediation.

Can you sell green without being one yourself?

Phillip Sargeant, Managing Vice President for Gartner reckons it is possible but IT vendors that have themselves deployed a green initiative have a stronger story to tell to enterprise customers looking to understand how to design, build and deploy a sustainable or green initiative.

The right approach to green

You can’t be green unless you are willing to spend some “green” (bucks). Like all other certification exercises ISO 14001 doesn’t come cheap. “If the sole objective is to obtain a certificate to hang on the wall, then the cost may indeed be high and the organization may well find that the certificate is not the passport to business which it imagined,” said Bryden.

Sargeant worries that green equating green solely on energy savings – in other words, saving money. It is much more than that. “Green can be associated with recycling, better supply chain management, better use of technology to reduce overall operating costs – such as using telepresence technology in favor of physically travel to conduct business meetings,” says Sargeant.

Cost savings should not be the be-all and end-all of a green initiative. “Going forward, they need to give thought to sustainability. Organizations need to change their mindset from simply saving dollars to being able to do something for the rest of society – social responsibility. A lot of organizations are not yet there,” adds Sargeant.

Bryden concurs and offers his thoughts.

“If implementation, with or without certification, is seen as an investment on which there should be a return, then the cost can be balanced against savings made in the use of materials, energy and transport, reduced waste. Whether or not an organization implements ISO 14001, it will become more and more difficult for the management of organizations to ignore environmental issues – and such ignorance has a high potential cost,” concludes Bryden.

* DNV is a supplier of accredited management systems certification services worldwide.

** ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards with a network of the national standards institutes of 157 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system.